Emirates faces headwinds: CEO

 

Tim  Clark.
Speaking at a media conference on the completion of operations of the new terminal “Concourse A”, Clark said the Middle East’s biggest carrier would continue its rapid expansion course despite headwinds from rising jet fuel costs and operational restrictions in India and Germany.

Concourse A, opened in phases in January, is 528 000 square metres in area and cost US$3,3 billion. It is the world’ s first concourse exclusively designed for Airbus A380 aircraft.

“By March 2014, we aim to operate with 210 aircraft in service, up from the current 190,” said Clark. However, “the rise in crude oil prices represents an uncontrollable burden to us”, he added.

Oil prices hit a nine-month high of nearly US$120 per barrel (Brent) last Friday, driven by positive trade data from the United States and China. Jet fuel costs represent around 40 percent of Emirates’ total costs, according to the official.

Regarding operational bars, Clark referred to the Indian government’s ongoing ban of its airports for A380 aircraft in general and the German government’s refusal to grant Emirates landing rights in Berlin.
As of now, only Germany’s partly-state-owned carrier Lufthansa has the right to fly directly from Germany’s capital to Dubai.

“We are still in talks with both the governments in New-Delhi and Berlin regarding these issues. Besides Berlin, we would also like to add Stuttgart to our German network,” Clark said, adding that the airlines would be ready to double its capacities for flights to India “because there is ample passenger demand in the sub-continent”.

He appealed to governments and regulatory bodies worldwide to accept the fact of new mobility of people and goods. “This paradigm shift requires a flexible attitude towards global airliners,” said Clark.
Emirates has ordered 90 A380 super-jumbo planes from European aircraft producer Airbus, among them 31 already operational.

Emirates flies with around 190 planes to 75 countries. On March 1, it will add Algiers as the 130th destination to its network.

Due to a recently launched strategic alliance with Australia’s first airlines Qantas, Emirates will share from March 30 Concourse A with Qantas, which flies two times a day between Melbourne, Sydney and Dubai.
Emirates’ net profit dived 72 percent to hit US$627,2 million in fiscal year 2011/2012. —Xinhua.

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